Finding 1175760 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-27
Audit: 389673
Organization: Webster University (MO)

AI Summary

  • Core Issue: Student enrollment status changes were not reported to the NSLDS on time or were incorrect.
  • Impacted Requirements: Compliance with federal regulations for timely enrollment reporting under 34 CFR Sections 690.83(b)(2) and 685.309.
  • Recommended Follow-Up: Improve internal communication for enrollment changes, consider IT support for better tracking, and conduct regular self-audits to ensure compliance.

Finding Text

Information on the Federal Program - Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans, Assistance Listing Number 84.063 Federal Pell Grant Program, U.S. Department of Education Program Year 2024-2025. Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting (Pell 34 CFR Section 690.83(b)(2); FDL, 34 CFR Section 685.309). Condition – Certain student enrollment status changes were not communicated to the National Student Loan Data System (“NSLDS”) on a timely basis or were reported incorrectly. Cause – Majority of the exceptions identified in the sample population were related to changes within the system not being properly identified and reported externally to NSLDS. Effect – The NSLDS was not properly notified of student enrollment status changes of Direct Student Loan and Pell recipients in accordance with federal regulations. Questioned costs – None Context - Out of a population of 1,014 student enrollment status changes requiring notification transmitted to NSLDS, a sample of 48 student enrollment status changes was selected for testing. 47 of the enrollment status changes had discrepancies in Enrollment Effective Dates between the NSLDS Campus-Level Record, NSLDS Program-Level Record, and the University Records. Additionally, 8 of these students had enrollment status changes that were reported outside of the 60 day requirement. Lastly, 5 of these 8 students had enrollment status changes that were not reported. Our sample was not, and was not intended to be, statistically valid. Identification as a repeat finding – 2024-001, 2023-003, 2022-001, 2021-001, 2020-002, and 2019-001 Recommendation – The University should determine a more timely way to identify and communicate across the necessary departments when a student's enrollment status changes. Possible outside IT assistance may be needed to properly capture student enrollment activity within the system so it gets reported properly within the electronic batches going to the Federal Audit Clearinghouse. We also recommend performing selfaudits on a monthly or quarterly basis to verify procedures in place are effective. Views of Responsible Officials and Planned Corrective Action - Management concurs with the finding and recommendation. See further information on the corrective plan provided by management.

Corrective Action Plan

The Financial Aid Office will continue to work closely with the Registrar's Office and Information Technology to resolve the NSLDS reporting discrepancies. Based on our preliminary review, the reporting inconsistencies appear to be related to changes in enrollment reporting processes and data feeds associated with the recent Student Information System (SIS) update, implemented in 2025. In partnership with the Registrar's Office, Information Technology, and the Office of Data Analytics (within Information Technology), the University will identify and correct the source of the repeated or inconsistent data submissions to the National Student Clearinghouse. Because enrollment reporting to the Clearinghouse directly impacts data reported to the National Student Loan Data System (NSLDS), resolving these data feed issues is a priority. Additionally, these departments will develop and implement enhanced internal controls to compare institutional enrollment records against NSLDS data to ensure accuracy and timeliness. One of these measures will include a monthly enrollment reporting audit to identify and correct discrepancies proactively. Updates may include but not be limited to timing and frequency of reporting, internal audits monthly during 2026, and expanding written documentation of the process and procedures. The University is committed to strengthening internal processes to ensure compliance with federal enrollment reporting requirements and to prevent recurrence of this issue.

Categories

Student Financial Aid Special Tests & Provisions Reporting

Other Findings in this Audit

  • 1175759 2025-002
    Material Weakness Repeat
  • 1175761 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $31.38M
84.063 FEDERAL PELL GRANT PROGRAM $4.39M
84.033 FEDERAL WORK-STUDY PROGRAM $521,780
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $418,884
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $340,185
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $338,133
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $312,461
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $116,080
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $104,921
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $27,760
84.425 COVID-19 EDUCATION STABILIZATION FUND $1,846